Download funding scheme for the bali action plan

FUNDING SCHEME FOR THE BALI ACTION PLAN
A Swiss proposal for global solidarity in financing Adaptation
PLAN OF THE PRESENTATION
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SITUATION
OBJECTIVES AND PRINCIPLES
FUNDING SCHEME
IMPLEMENTATION AND GOVERNANCE
ADDITIONAL WORK
FUNDING SCHEME FOR THE BALI ACTION PLAN
A Swiss proposal for global solidarity in financing Adaptation
1. SITUATION
Climate change (CC) consequences already visible (AR4)
Adaptation to the adverse effects of CC taking place now must be addressed
Financing Adaptation will require USD 10-40 bn per year (WB)
Adaptation Fund expected to provide USD 300-450 million until 2012
Adaptation capacity unevenly distributed across and within countries
A FUNDING SCHEME IS PROPOSED
FUNDING SCHEME FOR THE BALI ACTION PLAN
A Swiss proposal for global solidarity in financing Adaptation
2. OBJECTIVES AND PRINCIPLES
To levy the necessary funding for Adaptation by taxing CO2 emissions
To tax emissions in all the countries above a « basic need oriented threshold »
To establish a National CC Fund (NCCF) in each country
To establish a Multilateral Adaptation Fund (MAF)
Principle of common but differentiated responsibilites
Polluter pays principle
Principle of subsidiarity
FUNDING SCHEME FOR THE BALI ACTION PLAN
A Swiss proposal for global solidarity in financing Adaptation
3. FUNDING SCHEME
This scheme is an illustration of one possibility of the concept :
Tax rate : USD 2 per ton of CO2 emissions
Threshold : yearly emissions up to 1.5 ton of CO2eq per capita
The higher the income per capita, the higher the share of revenues to the MAF
The lower the income per capita, the higher the share of revenues to the NCCF
MAF to have a risk prevention pillar and a risk insurance pillar
MAF funds to be distributed to medium and low income countries
FUNDING SCHEME FOR THE BALI ACTION PLAN
A Swiss proposal for global solidarity in financing Adaptation
3. NATIONAL CLIMATE CHANGE FUNDS (NCCF)
Each country will autonomously operate its own NCCF
NCCF ressources are allocated according to the priorities set by the country
Disaster risk reduction programmes under NCCF can be co-financed by MAF
FUNDING SCHEME FOR THE BALI ACTION PLAN
A Swiss proposal for global solidarity in financing Adaptation
3. MAF – PREVENTION PILLAR
Objective: provide incentives and support for the integration of Adaptation
policies as an integral part of national and sectoral plans.
3. MAF – INSURANCE PILLAR
Objective: preserving/restoring public goods in case of severe weather events
related to climate change.
FUNDING SCHEME FOR THE BALI ACTION PLAN
A Swiss proposal for global solidarity in financing Adaptation
4. IMPLEMENTATION AND GOVERNANCE
Collection of the levy defined by each country, building on its taxation system
Scheme reduces the risk of moral hazard (prevention and insurance linked)
Allow countries to prepare legislation and fiscal reforms
Involve actors from the private sector (insurance pillar especially)
FUNDING SCHEME FOR THE BALI ACTION PLAN
A Swiss proposal for global solidarity in financing Adaptation
5. ADDITIONAL WORK
How to best integrate the proposed scheme into the negociation process ?
How to attract sufficient support to justify a comprehensive assessment ?
How to allocate the MAF ressources to the beneficiaries (indicators) ?
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